While interest rates remain extremely low and inflation continues to rise, the prospect of investing capital on the stock markets to secure a higher return is looking increasingly appealing to many individuals. Before this can be done, however, there are several important factors to consider, so, if you are looking to invest, here is some advice.
Handling Your Own Investments
One option you may consider is handling your own investments. That is to say, you will research the markets, pick out investments that look like they may suit you and then invest, either via a broker or using an online trading platform.
The notion of managing your own investments can be attractive, but, unless you have prior experience or a lot of time to learn the ropes before you begin, it is not in the least bit simple. In the first instance, you will need to become au fait with the markets themselves and all of the terminology and jargon that goes with that. In addition, you will need to work out how to make the investments and the most difficult aspect is to identify investments that will be profitable.
The latter involves degrees of difficulty, for example, a long term investment that has very little exposure to risk is not that hard to find. This type of investment will not give you a high return on investment (ROI) however. Investments that do have the potential for high ROIs have much more risk attached and so it is more difficult to pinpoint winners.
Investment Consultants and Wealth Management
Essentially, there are two alternatives. You can hand over your capital to a company who will invest it for you, there are many wealth management services that offer a range of packages with varying amounts of risk to choose from. This option can work well for those who are too busy to play an active role in their investment activities.
Another alternative is to seek out the services of an investment consultant such as Hymans Robertson. Here independent advice is given in a number of areas, investment growth for example. Once you have received the advice you require, you are then at liberty to take the advice and invest under your own steam or not.
When it comes to investing hard earned capital, the advice in the first instance is always to access your options and decide how much money to invest and how much risk you are willing to take. No matter which path you decide to follow always take heed of the old adage “never invest money that you can’t afford to lose”.